Verizon is preparing to cut more jobs this week, adding to what has become the largest workforce reduction in the company’s history. The latest round of layoffs is part of CEO Dan Schulman’s broader strategy to slash $5 billion in operational expenses by the end of 2026.

The cuts keep coming

During the 2025-2026 restructuring cycle, the company eliminated over 13,000 positions, roughly 13% of its workforce at the time. A smaller follow-up round in May 2026 trimmed several hundred more employees, representing less than 1% of the remaining headcount.

Estimates suggest that between 8,000 and 10,000 additional positions may still need to go before the company hits its $5 billion target. Severance charges alone are expected to land between $350 million and $450 million.

Beyond job cuts, Verizon is pursuing efficiency gains through vendor partnership optimization, software streamlining, real estate footprint reductions, and artificial intelligence deployment.

Why this matters for markets

The stock’s reaction to the layoff news has been modestly positive. Verizon competes in a brutally competitive telecom market against T-Mobile and AT&T, both of which have been waging their own efficiency campaigns.

Investors watching Verizon’s restructuring should pay attention to whether the $5 billion target actually translates into sustained margin improvement or just a temporary boost that gets competed away. The telecom industry has a long history of cost savings getting passed through to consumers via price wars rather than accruing to shareholders.